UPDATE 1-Brazil utility Light scraps offer plan, shares plunge

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RIO DE JANEIRO, Nov 27 (Reuters) - Brazil’s Light said on Tuesday it had dropped a plan for a share offering after the electricity distributor’s controlling shareholders blocked the move due to market conditions, sending Light shares plunging 13 percent.

The company, controlled by Brazil’s state-run utility Companhia Energética de Minas Gerais (Cemig), said in August it was considering a share offer and said it had a preliminary agreement with the Brazilian private equity firm GP Investments Ltd to buy part of its shares.

Cemig and two other key Light shareholders ruled out the share offering at a meeting on Monday.

“Light will continue to monitor market opportunities to optimize its capital structure,” the company said.

Shares of Light were down nearly 13 percent to 15.01 per share after the news. Cemig shares were little changed at 12.10 after earlier sliding as much as 4.1 percent. (Reporting by Alexandra Alper Editing by Edmund Blair and Bill Trott)